Answer:
5.09%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator.
Cash flow in year 0 = $-600,000
Cash flow each year from year 1 to 29 = $48,000 - $16,000 = $32,000
Cash flow in year 30 = $32,000 + $500,000 = $532,000
IRR = 5.09%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
Answer:
The payback period for this project is 2.43 years.
Explanation:
Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.
The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.
The payback period is the time it takes to cover the investment to be covered by returns.
The investment cost remaining in the first year
= $1,850,000 - $525,000
= $1,325,000
The investment cost remaining in the second year
= $1,325,000 - $812,500
= $512,500
The third year payback
= 
= 0.427
The total payback period
= 2.43 years
Answer:
The value of the stock is $28.57
Explanation:
Data provided in the question:
Dividend paid at the end of the year, D1 = $2.00 per share
Increase in dividend = $1.50 per share
Growth rate, g = 5% = 0.05
Required rate of return = 12% = 0.12
Now,
Price with constant Dividend Growth model = D1 ÷ ( r - g )
= $2 ÷ ( 0.12 - 0.05 )
= $28.57
Hence,
The value of the stock is $28.57
Answer: Boundaryless organization
Explanation:
Boundaryless organization is an organization that is not hindered or limited by boundaries created through established structures.
It could also mean an organization whose operation is not confined to a particular location or the confine of their office complex.
The idea of boundaryless organization was first conceptualized by Jack Welch who wanted to eliminate any form of barrier (both internally and externally) in the way General Electrics carried out its operations.
•Note that in order to achieved the concept of a boundaryless organization, flexibility and adaptability must be considered.
•Latest technology for getting work done must also be adopted over traditional mode of operation
Answer:
$836.08 per month
Explanation:
In order to calculate Cindy's new monthly rent, we would simply need to divide the renter's insurance by 12 since there are 12 months in a year. and then add that product to her monthly rent like so...
565.00 / 12 = 47.08
789 + 47.08 = 836.08
Finally, we can see that Cindy's new rent after including the renters insurance would be $836.08 per month
